- On all payment to residents
- On all payment to non-corporate non-residents
- On all payments to foreign corporate if total payment is less than 1 Crore
- On all payments to foreign corporate if total payment is more than 1 Crore
- On all payments to residents except salaries payment
- On salaries
- On all payment to non-residents and foreign companies
- These changes are applicable on the passing of Finance Bill . This date is 19-08-2009. However there are different views on applicability date. One view is that since these changes are for the full financial year, one can take benefit of Section 294 of the income tax Act and start applying this rate from the date of presentation of finance bill.(in my view its applicable from 01.04.2009 , same view is given in The Chartered Accountant Journal released by ICAI)
- Please ask your tax consultant for more clarifications.
|Resident||Corporate||Other than Salaries||N||N|
|Resident||Non-corporate||Other than Salaries||N||N|
|Non-Resident||Corporate||<= 1 crore||N||Y|
|Non-Resident||Corporate||> 1 crore||Y||Y|
There has been change in TDS Rates for 94C- Contractual Payments and 94I- rental payments. What is the effective date for the same ?
- These changes are applicable from 01-10-2009.
- Yes. The maximum rate of TDS is normalised to 10% in most cases. Please refer to the TDS Rate Chart for FY 2009-10 (check TDS Rate & downlaod Chart)
- This provision is applicable from 01-04-2010. Till such time even if valid PAN is not given , normal rate will be applied.
- Applicability of surcharge is mentioned in Clause (5), (6), (7) and (8) in Chapter II of the Finance ( No 2) Act , 2009.
- Applicability of Education Cess : Clause (11). Applicability of Secondary and Higher Education Cess : Clause (12).
What are the changes about section 194C about Job work (work according to specification)
- the detailed reply to this question is available hereTDS ON JOB WORK U/S 194C AMENDED FROM 01.10.2009